Brendan Smith (Cavan-Monaghan, Fianna Fail)
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31. To ask the Minister for Social Protection the provisions in place to ensure that persons living in this State and in receipt of a British social security payment are compensated when the value of sterling declines, and if such provisions ensure that those persons, if eligible for an Irish payment, receive an appropriate top-up payment; and if he will make a statement on the matter. [28737/16]

Leo Varadkar (Dublin West, Fine Gael)
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Social assistance payments act as a safety net for people who have insufficient income and who do not qualify for a contributory payment. The use of a means test is to ensure that resources are directed to those in greatest need.

Payments from the United Kingdom (UK) are assessed as income under current legislation. If the person applying for a Social Assistance payment has a UK pension, it is assessable, together with all other means such as savings and investments, when determining the rate of payment. In assessing means derived from payments received from non-European Monetary Union (EMU) States, the Department uses the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers. Under this mechanism the conversion rate used for means testing purposes is derived from the average of the daily exchange rates in the first month of a quarter. This rate is then used in all conversions during the course of the succeeding quarter. The exchange rates for converting sterling and other non EMU currencies are published quarterly in the Official Journal of the European Union, and take account of currency fluctuations. The Department obtains this rate at the beginning of each quarter.

Following the outcome of the UK referendum, negotiations on the UK’s future relationship with the EU will take time. In the interim, it is important to stress that all payments made by the Department of Social Protection, including those to recipients who are resident in Britain and Northern Ireland, and payments from the UK to residents in Ireland, will continue to be paid.

My Department is keeping the currency situation under review. It is open to any person in receipt of a social assistance payment to request that his/her entitlement be reviewed if they wish. It is important to note, however, that any such review will involve a full reassessment of all of the customer’s means to ensure that the person continues to receive the correct payment in line with their overall entitlement.

I hope this clarifies the matter for the Deputy.